Team to Probe Public Funds

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Team to Probe Public Funds

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The Nation (Nairobi)

October 2, 2008

News Article

A watchdog committee of Parliament wants to exorcise the ghost of weak controls that made government departments lose billions of shillings in one financial year.

The findings of the Government's main auditor have raised the eyebrows of the powerful Public Accounts Committee (PAC) whose members said they were appalled by the continued impunity with which senior civil servants wasted public resources.

In her report dated May 29, 2008, for the 2006/2007 financial year, the Controller and Auditor General (CAG), Ms Priscilla Komora, details transactions that are an indictment on the operations in most government departments.

PAC, an 11-member team of MPs, normally studies the CAG's reports and conducts investigations that involve calling as witnesses government and parastatal bosses to shed light on transactions and procedures.

The committee tables in Parliament a report recommending what action the Government should take on errant public servants and suppliers.

Although all committee members who spoke to the Nation asked not to be named saying they were yet to finalise their investigations, they were agreed on one thing: It is time to bring culpable officers to account.

The CAG's report speaks of weak financial controls, unsound investment decisions and ineffective management practices leading to loss of billions of shillings in public funds and an increase in public debt.

Sh500m loss

In the 2006/2007 financial year for instance, the Ministry of Agriculture lost more than Sh500 million through irregular purchase of equipment and machinery, pending bills, misallocation of funds for goods and services, under-expenditure, wasteful expenditure and mismatch in accounting records.

Public officers at district treasuries colluded to defraud the Government of millions of shillings, it said.

The report questions the State's continued holding of huge investments - more than Sh13 billion in 25 companies - most of which unviable.

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